Tech Startup Transforms US City Services

LANDING PADS CASE STUDY

After a successful launch in the US, Australian startup OpenCities is helping major cities go digital and improve the way they service their communities.

Every day people engage with their local governments in countless ways –
from registering pets to paying parking fines. But according to 2016
research conducted by Australian startup OpenCities, many city websites in
Australia, New Zealand and the US fail on a number of counts, including
readability, data privacy and mobile readiness.

OpenCities is transforming how cities deliver services to their
communities. Through out-of-the-box digital solutions, OpenCities helps
local governments move from paper-based, 9–5-style interactions to 24/7
mobile-friendly online services. It is a product that has been validated at
the highest level, with the company recently forming a strategic
partnership with Microsoft.

Founded in 2011 by Alex Gelbak, the company (under a previous name)
initially provided customised services and consulting to local councils in
Australia and New Zealand. Over time, Gelbak realised the issues faced by
government clients in transitioning to digital were very similar, and in
2015 he re-launched the business as OpenCities.

With local governments all over the world experiencing the same challenges,
global markets presented a big opportunity – particularly in the US where
there are 30,000 local councils, compared to approximately 600 in
Australia.

In 2016, OpenCities hired two team members in San Francisco to lead the new
US operation. In a case of perfect timing, Gelbak became aware of the
Landing Pads program and in July 2016 the OpenCities team arrived at the
San Francisco Landing Pad.

Landing in a world-leading tech hub

Landing Pads provide market-ready, high-potential Australian
startups/scaleups with access to some of the world’s most renowned
innovation and startup ecosystems. As part of the National Innovation and
Science Agenda, Austrade has established five Landing Pads in Berlin, San
Francisco, Shanghai, Singapore and Tel Aviv.

Participants are given an operational base at a Landing Pad for up to 90
days, where they benefit from Austrade’s extensive global network of
contacts and tailored business development assistance.

‘The Landing Pad team tapped into their personal networks to open doors for
us,’ says Gelbak. ‘They also provided a resource to support us in doing
some research and producing a benchmark report of over 3,000 US cities, so
that was incredibly valuable.’

The OpenCities team was based at RocketSpace, a tech hub home to
industry-leading startups and entrepreneurs, with alumni including Spotify
and Uber. Gelbak’s US team was based there full-time and he visited from
Australia several times throughout the 90 days.

‘Being on the ground, I learned more about the intricacies of the US
market,’ says Gelbak. ‘Having my US team there meant they were surrounded
by Australian companies and learned how we do business here. So it was a
bit of cross-pollination.’

One of Gelbak’s most eye-opening lessons was the cultural difference when
it comes to sales and marketing.

‘What we would consider by Australian standards to be beating one’s own
chest or being too loud or self-congratulatory is actually perfectly normal
business practice there,’ he says. ‘You have to make some big, bold
statements and be loud to get your voice heard. You have to ask for what
you want.’

Digitising services on a global scale

Since starting at the Landing Pad, OpenCities has won several large full
and beta clients, including City of Miami, City of Orlando and the City of
Grand Rapids, Michigan.

‘Having a base of operations in the US, particularly when you’re dealing
with government, is absolutely critical,’ says Gelbak. ‘We wanted to enter
the market strongly by securing a large, recognised city. Having the
Landing Pad as our US base helped us do that.’

One of OpenCities’ biggest wins since the Landing Pad has been securing a
strategic partnership with Microsoft. After holding the introductory call
while at the Landing Pad, Gelbak and his team have now started working with
Microsoft to help US cities deliver better services.

OpenCities was also accepted into and has since completed a SUPERPUBLIC
accelerator program run by San Francisco’s City Innovate Foundation, which
aims to solve urban problems using open innovation and public-private
partnerships.

Another key benefit was the money saved by avoiding the cost of a
traditional office space.

‘That’s money that we can now reinvest in sales and marketing, which is
really important in your first year of operation in a new geography,’ says
Gelbak. ‘The Landing Pad helped us focus on the tasks most important for
achieving success, rather than on the operational things you’d have to pay
for and think about if you’re going solo.’

Having signed up some major US cities, OpenCities is now focused on
expanding its reach. Gelbak plans to use that success as a platform for
launching into the Canadian market.

OpenCities has also attracted interest from Asia and Europe, and Gelbak
says Austrade’s ongoing support will be valuable as they go global.

‘Austrade has invited us to consider some of the other Landing Pads when
we’re ready to tackle those markets,’ he says. ‘I think it will be a great
thing to continue the dialogue and the relationship.’